I watched Angelo Mozilo being interviewed (by Maria Bartiromo) this morning on CNBC. He was quite good, gave direct answers, sounded smart.
Key takeaways:
1. He can’t say for certain CFC will not end up in bankruptcy. But he hedged somewhat by saying, the probability is not higher than, say, 6 months or year back.
2. This is important – He said he has no clue as to what is happening in the credit market. He felt the $ amount in subprimes is too small to create this universal crisis of confidence in debt. He thinks the situation is serious but does not believe there is some way to fix things. He says he has not seen anything like this (loss of trust) in 55 years of lending business.
3. This is a very interesting comment: “Real estate always takes us into a Recession or out of a Recession”. The corollary seems to be he is certain that a Recession is inevitable.
